Description

This project consists of 3 components namely:

I.Water Infrastructure Development: This will include the development of 300ha of small ( drip) irrigation schemes in the (four) districts; construction and installation of water harvesting structures such as 18 small earth dams, 38 watering points for livestock as well as 10 boreholes to enhance efficient water use for climate resilience. Fifty percent of drip irrigation beneficiaries would be women farmers who will be cultivating high value vegetables and horticulture produce.

II.Restoration of Natural Habitats & Landscapes: Consists of two main subcomponents: 1) Landscape Management: This will include the development of a sustainable land management and investment framework as well as participatory land use planning and a study of the economic valuation of land. The outcome will enhance sustainable use of land resources in order to cope with climate change. It will also promote conservation agriculture on 500ha (through promotion of composting for soil nutrient enrichment, minimum/zero tillage, appropriate crop sequencing and rotation mechanisms) reforestation and fire control on 500ha and provision of 25 improved charcoal production units and 1,500 units of improved cooking stoves as coping mechanism to CC. 2. Livelihood Diversification: This will target sustainable livelihood enhancements particularly for the women such as the promotion of Agro-forestry including a cashew colony, community forestry nurseries and the promotion and improved management of facilities for non-ruminant livestock (poultry, apiculture and aquaculture).

III.Project Management. Includes capacity building in climate change management, community development and training, monitoring and evaluation, financial management and development of a communication strategy. It will also cover project management activities including audit and M&E. Deliberate effort would be made to include qualified women in Project Management team.

Objectives

The ECR-SLWMP proposes to strengthen the capacity of communities to address the inter-linked challenges of adverse impacts of climate change, rural poverty, food insecurity and land degradation.

Rationale

Mozambique is subject to extreme events that take the form of drought, flooding and tropical cyclones. The country's economic performance is already highly affected by frequent drought and flood and rainfall variability. Drought is the most frequent disaster. Mozambique has areas that are classified as semi-arid and arid, where rain - even when above average - is inadequate and results in critical water shortage and limited agriculture productivity. In national projections, climate change is expected to increase rainfall variability and the frequency and magnitude of extreme events. The overall impact of these changes on GDP would be substantial, averaging 3.5% of GDP even in the most conservative assumptions on climate change, and as high as 13.6% in the most pessimistic scenarios. Therefore, mainstreaming adaptation to climate variability and change into economic planning could reduce Mozambique's vulnerability to rainfall variability and water shocks.

Natural hazards related to Climate Change are a priority, consequently, UNFCCC and the National authorities have developed the National Adaptation Program of Action (NAPA) outlining urgent and immediate actions required to face climate change impacts and adaptation measures. Among the objectives as defined by the NAPA, special attention is given to: a) strengthening of the capacities of family farmers to deal with the adverse effects of climate change; b) the promotion of public education activities and information dissemination on climate change; c) the promotion of actions to limit erosion and d) the promotion of the integration of climate change into decentralized district planning. Furthermore, Mozambique's newly developed medium-term Action Plan for Reducing Poverty (PARP, 2011 -2014) aims to reduce the poverty headcount from 54.7% in 2009 to 42% in 2014, and to promote human well-being and economic development through rapid, inclusive and broad-based growth, based on three objectives:

(i) increase of agricultural and fisheries production and productivity,

(ii) employment promotion, and

(iii) social and human development. These objectives are supported by two overarching pillars: macroeconomic management and governance.

The major areas of interventions of the proposed "ESustainable Land and Water Management Project (SLWMP)" are closely linked to the first objectives of the NAPA and PARP. ECR-SLWMP will also promote the development of infrastructure and livelihood diversification to enhance Climate Resilience for sustained economic growth in three (5) arid and semi-arid districts of the Gaza Province (Mabalane,Chicualacuala, Massangena, and Guija) where drought and flooding are two frequent climatic risks.

The Gaza Province is considered by the NAPA as one of the most affected areas of Mozambique when considering climate change effects. The main causes of desertification in Gaza are: a) reduction of river water levels; b) low precipitation; c) uncontrolled bush fires; d) indiscriminate felling of trees for charcoal and e) firewood and building materials (timber, stakes, etc.).Consequently the NAPA proposes the strengthening of the capacities of the agricultural producers to cope with climate change. Under this action, several interventions are identified as support of agricultural infrastructure, construction and/or rehabilitation of irrigation systems as means of reducing the loss of crops and livestock during the dry season thus increasing the capacity of families to deal with climate change. The SLWMP is in line with the Bank's Action Plan on Climate Change which calls for increased support for capacity building to tackle climate change risks. The SLWMP will also contribute to the first objective of the PARP and the first pillar of the CSP through the envisaged increased agriculture productivity as a result of the improved water and land management activities. The SLWMP aims to promote inclusive growth through assistance to communities in adapting to the vagaries of climate variability and change thus helping to sustain increased productivity of the agricultural sector in the selected districts, whilst at the same time promoting livelihood diversification. The project is targeted at increasing income, improving the quality of life, contributing to food security as well as the promotion of sustainable use and management of Natural resources of the communities of the selected districts.

Benefits

The investment is aimed at promoting climate resilient livelihoods through community-based watershed/ landscape management approaches, thus enabling resource poor communities to reverse their declining land productivity occasioned by climate change and variability. It will also establish a sustainable community-based water-harvesting program in the arid and semi-arid areas of the Gaza Province and enhance crop productivity through introduction of drought tolerant varieties and ea rly maturing species as well providing diverse livelihood as coping mechanism for climate variability. It will encourage conservation of natural habitats through reforestation, agro-forestry and fire prevention.

Over 70% of the targeted population is women who are often the most vulnerable in cases of flood and drought occurrences given their key role in producing staple foods and crops for household consumption. The project would also encourage the participation of women in capacity building.

FIRR 20% NPV @12% cost of capital(USD14.86 million) EIRR 18.3%

The project shows an economic rate of return (ERR) exceeding 18%. The rehabilitation of the earth dams and the development of the irrigation scheme will facilitate the efficient distribution of water, which itself will boost the farmers productivity. In addition to the quantifiable benefits, the project will generate substantial positive externalities including the increase in value of land and provision of a conducive environment for rural development.